Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
How can Cazoo’s business be worth 20 X more than lookers?
For many City fund managers, the answer’s simple. It isn’t.
As one of the biggest, who has shares in traditional dealers, puts it: “Cazoo is a bubble. Pure and simple. Possibly one of the biggest ever. And when it pops, a lot of people are going to feel it.”
A reknowned short-selling hedge fund investor with a nose for such things agrees: “He’s a clever guy, no doubt, Chesterman. But I’m afraid this one is heading for a nasty fall.”
According to him, the tycoon has created his business just as technology company valuations have gone berserk.
Pretty much all tech stocks went into orbit last year as big money went chasing The Next Big Thing after Covid left interest rates at zero or lower.
Some people think that the PLCs in the Automotive sector are having a one-off profits bonanza, however this could not be further from the facts, all main franchise dealers have never been so lean and mean, they have all finally weakened up and understood that its profit that is of interest and not market share.
The supply of new and used cars has indeed been challenging but all new orders now being taken have resulted in an extremely strong order book through to the beginning of Q2 2022.
Cazoo and Cinch are now in a market where as of the end of July Only 2 per cent of cars are bought online at present.
They have an abundance of money and the only way Cazoo and Cinch can survive is to buy profit, this will come from them taking out a clean large automotive PLC, guess who’s the most audited Automotive plc in Europe, who is making circa £80m per year and is only valued at £270m???
For anyone who really understands the LFT application and new technical guidelines you will notice that some of the criteria won’t be able to be completed by innova, whilst Avacta has all areas covered and will qualify for approval..
CAZOO IS DESTINED FOR FAILURE, JSUT ASK ANY TRADITIONAL MOTOR DEALER FOR THEIR STATS ON HOW MANY PEOPLE NOW USE CLICK AND COLLECT V WHEN WE WERE IN LOCKDOWN, 97% OF THE PEOPLE NOW WANT TO VISIT THE DEALERSHIP TO COLLECT THEIR VEHICLE, 98% WILL NOT PURCHASE PRIOR TO HAVING A TEST DRIVE OF A USED VEHICLE SINCE LOCKDOWN EASED.
It is interesting to note this morning at 1000hrs Cazoo and Cinch had a combined stock holding over just 6350 vehicles.
Lookers and Pendragon have a stock holding of just under 19000 vehicles.
Vertu and Lookers will report annual profits of around £150m combined for 2021.
Cazoo continues to be loss making and has a valuation of £5bn
After all, many established car dealerships sell way more cars than Cazoo. Pendragon, one of the UK’s biggest dealerships, has 16,000 used cars listed on its website compared with Cazoo at around 3400.
How can Cazoo’s business be worth 20 X more than lookers??
For many City fund managers, the answer’s simple. It isn’t.
As one of the biggest, who has shares in traditional dealers, puts it: “Cazoo is a bubble. Pure and simple. Possibly one of the biggest ever. And when it pops, a lot of people are going to feel it.”
A reknowned short-selling hedge fund investor with a nose for such things agrees: “He’s a clever guy, no doubt, Chesterman. But I’m afraid this one is heading for a nasty fall.”
According to him, the tycoon has created his business just as technology company valuations have gone berserk.
Pretty much all tech stocks went into orbit last year as big money went chasing The Next Big Thing after Covid left interest rates at zero or lower.
The company will make in excess of £80m this year, their property portfolio is valued at 77p per share and the whole lot is only valued at £263m.
The stock is miles undervalued and will be re-rated.
Cazoo and Cinch continue to miss their targets and as soon as the City realise that their models do not work all PLC motor sector stocks will fly…..
29 July 2021
Lookers plc
First Half Trading Update
Strong performance continuing - increase in full year expectations
Lookers plc ("Lookers" or the "Group"), one of the leading UK motor retail and aftersales service groups, today provides a trading update covering the six month period ended 30 June 2021 ("H1" or the "Period") and an increase in the Board's expectations for underlying profit before tax for the full year.
Trading Update
The Group has delivered an excellent trading performance throughout the Period, despite continued disruption and uncertainty caused by Covid-19. This positive momentum has been driven by continued outperformance of the UK new retail car market combined with strong used volumes and margins, underpinned by Lookers' improved hybrid, omni-channel customer experience. The results also reflect a resilient aftersales performance and the benefits of material cost reductions.
As a result of the above, underlying profit before tax in H1 is now expected to be approximately GBP50m compared to a GBP36.1m underlying loss last year.
We will hear lookers trading update next week and i am expecting record profits and a Re rating.
Clearly there continues to be some false worries about online sales taking over from the traditional route to market………
Anyone who does any detailed research will see that online continues to drop off as we venture back into normal living, just ask any sales executives who work in the motor trade about click and collect versus the traditional route…
The online research continues to increase but the stats clearly show that customers continue to want to visit dealerships, there are more walk-ins without appointments already this year compared to the same period 2019.
Customers want to visit dealerships whilst test driving and deciding on a purchase.
Cazoo and Cinch continue to purchase dealerships as they have realised that their model is clearly failing…
The city has called the motor sector as wrong as anyone could imagine, the current turnover and profit levels are phenomenal CAZOO and CINCH are fully aware at boardroom level that their model is not working as well as envisaged and the costs involved in transporting the cars retailed by them is clearly not sustainable……
Franchise Dealers are very focused on taking full advantage of the current market and this is likely to create a big surge in the number of opportunities available off the back of some very strong results.
Although the City continues to undervalue the Plc Dealer Groups the tide will turn when they finally realise that digital car retailing requires the support of a substantial infrastructure, CIMCH and CAZOO are not retailing as many vehicles as some would think.
Lookers are retailing over 8000 used cars per month, this is more than what CAZOO and CINCH hold as their total stock for sale…
Lookers will report record profits well in excess analysts forecasts next month, i am told the profits will be around £50m..
Company could make north of £75m this financial year and the dividend will also be reinstated.
The company will report in august wonderful profits, the sector continues to enjoy huge success and great margins and yet some people continue to expect instant success.
Sell up and move on if your not patient but fundamentally this company is way undervalued and don’t be surprised if Cinch or Cazoo enter with a bid in the coming weeks.
The upcoming Trading update on Tuesday will certainly open some peoples eye’s to the profits lookers have generated YTD.
Marshall Motor Holdings PLC Pre Close Trading Update
25/06/2021 7:00am
UK Regulatory (RNS & others)
Marshall Motor (LSE:MMH)
Intraday Stock Chart
Friday 25 June 2021
Click Here for more Marshall Motor Charts.
TIDMMMH
RNS Number : 0772D
Marshall Motor Holdings PLC
25 June 2021
25 June 2021
MARSHALL MOTOR HOLDINGS PLC
("MMH" or the "Group")
Unscheduled Trading Update - Record Results anticipated for 2021
Marshall Motor Holdings Plc, one of the UK's leading automotive retail groups, today provides the following unscheduled trading update given significant upgrades to both first half and full year expectations for 2021.
The market has continued to benefit from positive tailwinds, including a recent unprecedented used vehicle value appreciation and favourable demand-to-supply conditions for both new and used vehicles. In addition, the Group has continued its strong outperformance of the wider new and used vehicle markets.
As a result, the Group expects to report an exceptionally strong first half performance in both profit and cash generation when it issues its interim results on 10 August 2021.
There remains a high level of uncertainty over the second half of 2021, and possibly longer, given the potentially significant impacts of new vehicle supply issues as a result of a well-documented worldwide shortage of semi-conductors, a realignment of used vehicle values and the continuing impact of the COVID-19 pandemic. To date, supply issues have had limited impact on the Group's sales volumes, however supply in both new and used vehicles has tightened and there are signs that these issues will become more acute in the second half of the year and maybe beyond.
As a result, there are a wide range of possible outcomes for the Group's full year results. Despite having committed to repay GBP4.0m of Government support, as previously announced, the Board now expects that continuing underlying profit before tax in 2021 is likely to be significantly ahead of current market expectations and well ahead of the Group's historic record result.
As previously stated, the Board understands the importance of dividends to shareholders and intends to resume the payment of dividends as soon as possible. It will consider the position next at the time of the release of its interim results on 10 August 2021.
I suspect we'll have a pretty miserable winter because the other respiratory viruses are going to come back and bite us quite hard," he said. "But after that, I think we'll be seeing business as normal next year."
Meanwhile, Dr Susan Hopkins, Public Health England's director for COVID-19, warned "we may have to do further lockdowns this winter" depending on whether hospitals start to become overwhelmed.
But she told the BBC's Andrew Marr Show: "I think we will have alternative ways to manage this, through vaccination, through anti-virals, through drugs, through testing that we didn't have last winter."
https://news.sky.com/story/covid-19-cases-rising-exponentially-in-england-study-finds-12334500
I have been in Avacta for over 12 months and know all about Innova, its really the only one LFT that is talked about in the media..
Other than the odd article by the Yorkshirepost.co.Uk we rarely feature in any tabloids.
The pandemic is moving at pace throughout the world and Nobody really knows about Avacta’s massive potential...
The PR and public awareness that Avacta ‘s PR Company has delivered for them is the worst i have ever seen for a world class leading product.
We have the best test and yet it continues to be the best kept secret in the world. Avacta your marketing is best described as PATHETIC at best..
It is a national crime that Avacta has the best Lateral Flow Test in the World yet our Government is spending money on an inferior Chinese Test that has been banned by America...
Dr Alastair Smith, Chief Executive Officer of Avacta Group, commented:
This excellent performance and ease of nasal sampling, coupled with the fact that the AffiDX test is and has been developed in the UK, is based on UK technology and is manufactured in the UK, are huge selling points for customers in Europe.
certainly hope everyone realises that the government has given contracts to INNOVA whilst ignoring a UK LFT that has been developed in the UK, is based on UK Technology and is manufactured in the UK, these are all huge selling points that our Government has chosen to ignore, the very company (INNOVA which is Chinese)they are supporting with contracts has now been slaughtered by the FDA and told to immediately withdraw their products from the States.
We may well have lost life’s unnecessarily, the more people that urgently write to their MP’s the better.
AVACTA will now sell their hugely accurate tests to Europe because the UK Government has been conned by its own advisors, people should go to prison for these unacceptable decisions...
BRITISH MADE BRITISH DESIGNED BRITISH MANUFACTURED AND WORLD CLASS RESULTS
This is unbelievable, there was clear concern for the Innova test in November 2020..
https://www.bmj.com/content/371/bmj.m4469